One year after seeking a license to open a recreational cannabis store in Kittery, a Maine company is challenging the town over its application process.

High Maine LLC alleges in its appeal to the state’s highest court that Kittery’s lottery-style system of awarding recreational cannabis shop licenses unfairly benefited another company, GTF Kittery 8, which High Maine says didn’t follow all of the town’s rules – including one requiring these businesses to propose locations that are at least 1,000 feet from a school.

The lawsuit was dismissed in January by a York County Superior Court justice, who ruled that the company didn’t have standing to sue because it didn’t show how it was personally harmed.

High Maine believes it was harmed because it would have been higher on the waitlist had the town dismissed GTF’s “defective application.” The company appealed that ruling to the Maine Supreme Judicial Court in February. The court is scheduled to hear arguments Sept. 10.

Cameron Ferrante, an attorney for the town, said Tuesday that officials believe GTF’s application was fully compliant with town rules and that the approved location is not within 1,000 feet of a school or day care. And even if High Maine wins its appeal, it wouldn’t change anything, the lawyers wrote, “without a realistic path to obtaining a marijuana license from the Town.”

GTF Kittery 8 is not named as a defendant.

Kittery, like some other Maine towns, only allows one recreational marijuana store per each of the town’s “allowable” zones – three commercial areas as of 2022.

In 2021, the town welcomed “pre-applications” from companies interested in opening a store. That October, the town randomly selected three pre-applicants. They then added the rest of the applicants to a waiting list, in case the selected companies weren’t approved.

Both GTF Kittery 8 and High Maine were on that waiting list when GTF Kittery 8 was selected in February 2023 to officially apply, according to court records. Attorneys for the town said in court records that High Maine applied after the other applicant, GTF Kittery 8, and that is why GTF was selected.

In September 2023, the town’s planning board approved GTF Kittery 8’s application.

“Had the Town correctly dismissed GTF’s application, High Maine would be that much higher on the waitlist,” High Maine’s lawyers wrote in court records. “Now, however, it is forced to stay on the waitlist behind an improperly authorized licensee.” 

Lawyers for the company didn’t respond to a voicemail and emails Tuesday.

High Maine was still on the waiting list as of June 27, according to court records. The town manager did not respond to an email Tuesday asking about the waitlist and approved recreational businesses.

Kittery has received other complaints about its lottery from other recreational cannabis companies, but none have reached the high court.

In March 2022, Eliot-based company Sweet Dirt said the town’s application process favored applicants who could afford to spend money on multiple “pre-applications,” arguably buying them multiple spots on the waitlist.

At the time, the two co-founders of Theory Wellness were both allowed to apply for two of the three available licenses. One application fell through though, according to court records, and GTF Kittery 8 was asked to apply for one of their zones.

The Office of the Maine Attorney General investigated the town’s procedure and, in a March 31, 2022, letter to Kittery’s attorney, said it didn’t have plans to pursue legal action.